Green Ltd purchased 90 per cent of the issued capital and in the process gained control over

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Question:

Green Ltd purchased 90 per cent of the issued capital and in the process gained control over Maroon Ltd on 1 July 2025. The fair value of the net assets of Maroon Ltd at purchase was represented by:

Share capital	$3 220 000
Retained earnings	$ 740 000
Total	$3 960 000

Green Ltd paid cash consideration of $3 700 000 for Maroon Ltd.

During the period ended 30 June 2027, Maroon Ltd paid management fees of $100 000 to Green Ltd and Maroon had an operating profit of $405 000. Maroon Ltd declared a dividend of $98 000 during the period.

Green purchased inventory from Maroon during the period ended 30 June 2027 for $100 000. The inventory cost Maroon Ltd $85 000 and at the end of the period Green had 35 per cent of that inventory still on hand. Maroon's opening retained earnings for the period ended 30 June 2027 was $810 000.

Goodwill has been determined to have been impaired by $13 600. Companies in the group use perpetual inventory systems and accrue dividends when they are declared by subsidiaries. There were no other inter-company transactions. Ignore tax implications.

For the period ended 30 June 2027, show the calculation of goodwill, present all required consolidation journal entries including Non-controlling Interest (NCI) entries?